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relationship between amount that consumers are willing to purchase and its price |
demand |
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relationship between quantity of a product offered for sale and it's price |
supply |
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total spending in the economy as a whole in a given period |
aggregate demand |
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total value of goods and services produced in a given period |
aggregate supply |
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the responsiveness of the quantity demanded (or supplied) to a change in a product's price |
elasticity |
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period of substantially increasing prices and decreasing value of money |
inflation |
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period of substantially falling prices and rising value of money |
deflation |
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as long as everything else remains the same |
cetaris paribus |
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something that sounds true but is false |
hidden fallacy |
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it happened after this therefore it happened because of this |
post hoc ergo propter hoc |
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a limit to the amount we can produce as a country |
scarcity |
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the value of the alternative that is sacrificed when all resources are allocated |
opportunity cost |
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measures output that is owned by residents of Canada |
Gross National Product (GNP) |
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measures production taking place only in Canada |
Gross Domestic Product (GDP) |
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a ratio of a products' price to a price in the base year (1971) |
Consumer Price Index (CPI) |
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people 15 or over not working but actively seeking employment |
unemployed |
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people who take jobs below their capabilities |
underemployed |
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people 15 or over and working |
labour force |
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are students included in the labour force? |
no |
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are people on workers compensation and welfare included in the labour force? |
no |
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value that looks at the inflows and outflows of currency in Canada |
balance of payments |
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a measure of the fluctuations in economic activity over a period of time |
business cycle |
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the four periods of the business cycle are |
recession depression recovery boom |
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period of economic decline for minimum of 6 months |
recession |
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period of large-scale unemployment and declining levels of GNP |
depression |
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the lowest point in economic activity before the economy rises |
trough |
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central bank responsible for regulating the money supply in Canada |
Bank of Canada |
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rate of interest paid by chartered banks on money borrowed from the Bank of Canada |
bank rate |
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financial institution that sells shares and accepts deposits from members |
credit union |
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excess of total expenditures over total receipts |
budget deficit |
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man made resources used to produce goods and services |
capital |
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economic system where free market principles and private ownership dominate |
capitalism |
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economic system where centralized decision making and state ownership dominate |
communism |
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economic system that stresses government ownership of major resources and centralized decisions |
socialism |
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the ratio of outputs to inputs |
productivity |
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lower costs due to efficiencies of large-scale production |
economies of scale |
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increased costs due to inefficiences of large-scale operatoins |
diseconomies of scale |
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goods or services produced in the home country and sold to another country |
exports |
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goods or services produced in another country and sold to the home country |
imports |
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a limit of goods that can be imported into a country in a given period |
quota |
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a tax imposed on imported products |
tariff |
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the return paid to those who lend money to firms or others |
interest |
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a market where shares (or ownership) are exchanged |
stock market |
